What specifically is the Syndicator doing besides guaranteeing the loan to warrant the 80%? 

Before putting your condo on  the market I would check to see if it is "Warrantable or Non-Warrantable" this means that it is eligiblee to be sold to Fannie or Freddie.

The difference between 3% of $138k vs $142k hardly warrants bothering the Seller about, does it?

In such a situation the retainer may be warranted.

Bottom line is that you have to get to a level of comfort that they can afford the place and are responsible enough (as individuals) to warrant an approval.

As for the repair cost I always keep a home warrant on each property which covers the fans, dishwasher, garbage disposals and every other appliance in the property as well as other repairs (plumbing, some electrical, etc).

But I agree further inspections of the other units and overall condition of the complex is warranted!

Be flexible too on occasion, if warranted, for the greater good.

You need to have your quitclaim deed warranted, which will require a Motion or suit to quiet title. 

Couple that with varying forms of DIY paperwork, servicing and other potential loan defects and we have the grab bag of defects which warrant the discount on the loan.